Finally hit rock bottom please help

[hurtandconfused]

Im at the lowest point ever in my life!.... Lost my job after my company went into liquidation, company car was collected this week....bank is trying to enforce a personal guarantee, bank took away my overdraft, council tax frozen the last £90 i had in the bank, Im claiming tax credits for my children and my only other source of income is from my possessions im selling on ebay - (which im slowly running out of things to sell). Husband and I applied for over 70 jobs between us in the past fortnight - not even 1 interview yet. I had to stop all payments on my unsecured debts - all now have defaults - passed to debt collectors

 

I had to enter a payment arrangement with my mortgage lender which thankfully they moved me to interest only plus £150 a month towards arrears of 2 months. the only positive thing right now is that ive managed to keep up this arrangement.

(all equity in house is under personal guarantee for previous company debts)

 

I dont know what on earth to do and im worried sick I wrote to all unsecured debts a year ago when i first started to really struggle to keep up payments. I requested a copy of the signed credit agreement - some provided it then i just explained the situation re inability to pay. - all lenders 9 in total have passed to debt collectors even though they couldn't supply the agreements... Should I offer all of them a token payment of a few pounds to try and avoid them getting a ccj? or only the ones who provided the agreements? do i try and go back to the original lender or have they now totally sold it over to collectors - which collectors are most likely to take you to court?

 

im so stuck i dont know what to do.... We have no car now and just using the bus to get around if we need to and basically living to the bare minimum so trying to avoid leaving the house.... Im in tears and feeding my kids beans on toast practically every day I cannot sleep or function anymore what can i do to end this terrible nightmare.

 

i just want to get a job to enable me to try and get back on track. Please anyone any help re my unsecured debts i would really apprechiate any advise at all. Thank you for taking the time to read this

[maroondevo52]

Hello and Welcome,

 

Sorry to hear you are having such a hard time, If you could list your debts, loans credit cards ect and what the state of play is with them at present, we can try to get some of them sorted regarding moving forward.

 

Regards,

 

Scott.

[Desperate Daniella]

Hi hurtandconfused and welcome to CAG!

 

I am so sorry you are having such a bad time at the moment. You have got a staggering amount to deal with and it's clear that both you and your husband are trying so hard to get back on track.

 

As you've correctly identified, the mortgage payments must be the first priority.

 

It's absolutely terrifying being hounded by debt collectors but you can deal with them. I was a frightened mess when I found CAG in 2008 and you could have papered a couple of bedrooms with the threatening letters I received. I understand what you are going through. I don't know what would have happened to me if I hadn't found CAG.

 

You say that several creditors sent agreements, but (forgive me if I'm asking a silly question) did you check that all the agreements did in fact comply with the Regulations of the Consumer Credit Act 1974? If you don't understand this question, that is quite okay. I knew absolutely nothing when I found CAG.

 

To start with, as Scott says above, can you list all the debts here. I may then suggest that you will need to start a separate thread for each one. This will be a huge learning curve for you. I had seven creditors when I found CAG and my head was spinning with everything I had to take in, but I learned quite early on which debts had totally unenforceable agreements .

 

If you know an agreement is unenforceable you can use that knowledge to negotiate a settlement with the creditors, or if you simply cannot afford to do that then you'll know which ones to ignore or to challenge.

 

Can you please list each debt with the amount owing and the date the agreement started and if you had, for example, a Barclaycard that was another card first, please name the original card issuer.

 

Also, can you tell us who is currently chasing you on each account. There are DCAs who just chase money for the original creditor and usually just threaten, and then there are debt buyers who actually own the account. These can be trickier but can be dealt with.

 

Also, if you have your statements please check for any charges. You may be able to reclaim them against the outstanding balance.

 

Did you make any PPI payments that could be reclaimed?

 

I'm sorry to ask so many questions, but the more information you can provide the easier it will be to advise.

 

DD

[hurtandconfused]

my goodness im overwhelmed with your kindness thankyou so much for getting back to me I went to the doctors and he has given me tablets to help me sleep and anxiety tablets to get me through my day.

 

I have made a list of the debts and the status etc below

 

Self assessment tax due £383 passed to bluestone credit management - (this was from when i did some extra work for a company while i was struggling in my own business)

Bank of Scotland Loan £7439 default balance Sep.2012 Last payment May 2012 now passed to Robinson Way Collectors

Halifax Loan £3288 default balance Nov 2012 Last payment June 2012 now passed to Westcot collectors

SYGMA BANK (Credit Card) £2,497 default balance July 2012 Last payment Mar 2012 passed to collectors

BARCLAYCARD (was egg) £940 default balance 20/2/13 last payment March 2012 passed to Robinson Way collectors -

MINT CARD £5003 default balance 14/2/13 last payment March 2012 passed to Moorcroft

NEXT DIRECTORY £1036 DEFAULT NOW PASSED TO LOWELL

LLOYDS CARD £3020.45 Default now passed to BLS Collections and scm solicitors

capital one £1229.21 default now passed to Lowell

Vanquis bank £343 default - passed to collectors - I dont recognize this debt and they wont provide any info the are ignoring my letters

Council Tax arrears £1943 - not on credit report but sending very nasty letters

 

barclaycard dont have my original signed application - (was applied online)

Mint provided copy of the original signed application (signed a squiggle line by me)

Next dont have credit agreement and said they dont have to provide it either?

Lloyds credit card was on a token payment of £40 a month but can no longer pay

capital one dont have my original signed application - (was applied online)

bank of scotland froze interest and payments for 6 months but wouldn't extend it

 

There is no PPI atall on any of the above - will be lots of late payment fees though

 

Also have a personal guarantee from my former ltd company - they provided all legal paperwork which was signed - its for £54,000 secured on my house - they want payment proposals, Ive asked them to refund all ppi - they said there wasnt any but I found a ppi welcome letter and sent them a copy. they still say there was none so i called fsa and then told lloyds and they are now investigating ppi claim.... worried sick they will make me sell my house.

 

Also signed a guarantee for the company car (not at a solicitors office though - just at the garage) when they collected it they said there was £1800 of repairs to be done ? worried sick im going to be chased for this too

 

Any help atall would be very much appreciated! I sent all creditors the prove it letter but only some replied.

 

Im feeling a bit better now Ive written all the debts down.. hopefully now i will manage to tackle it and try and pull myself out of this mess.

 

Feeling embarrassed and ashamed but so very greatful for any help or advise or even a point in the direction of a self help guide

 

thankyou all so much for understanding my situation

[citizenB]

There is no reason to feel ashamed - you have had a financial hiccup.. and those very companies who were so eager to sling credit in your direction are now not prepared to share any responsibility.

 

National Debtline might be worth speaking to. They have a Scottish section now, which I understand is extremely helpful - you can speak to them in confidence safe in the knowledge they are there to help and advise and not judge.

 

http://www.nationaldebtline.co.uk/scotland/

 

or call National Debtline free on 0808 808 4000

• Monday – Friday 9am-9pm
  
• Saturday 9.30am-1pm
  

We can help you reclaim charges and PPI which might bring down some of the balances.

 

Do you have statements ?

[Desperate Daniella]

Hi hurtandconfused,

 

I am so glad you are feeling just a little better.

 

Let me read through your list carefully and I'll see what I and others can suggest on how to move forward. It may take me a day or so as it's always difficult to get some uninterrupted time at the weekend.

 

We also need to get some others to your thread and I'll alert anyone I think can help you with each problem.

 

I hope we can help you with some of these problems.

 

DDx

[maroondevo52]

 

We also need to get some others to your thread and I'll alert anyone I think can help you with each problem.

 

 

I've asked Crocdoc to have a look at this thread to see if he can help.

[hurtandconfused]

Thankyou all so very much for your help! I am truly grateful for help of any kind whether it be a link or anything atall. Overwhelmed by your kindness in helping me with this feels like a weights been lifted already

thankyou so much

 

CitzenB - Its only the business loan I had PPI on and Ive complained to Lloyds - FSA sent forms to fill in but was going to give lloyds time to look over it first. I will have several late payment fees though from past year - My credit history was perfect for about 10 years until last year when lost business thats when I had to stop paying. I will give that number a call and see if they can help thankyou so much

 

Desperate Daniella - Thankyou so much really appreciate it I found a link to the template letters on here i wondered whether to send the prove it letters again or whether to send the one asking to accept token payments, im desperate to sort this mess out.

 

maroondevo52 Thankyou so much really appreciate this alot thankyou

[Desperate Daniella]

I really think you are going to need to start a separate thread for each bank because you need to attract people who have had personal experience with each of them, and they are all different. Some may not be enforceable so you can put them on the back burner.

 

I don't know about Mint, for example, but others do. If they have sent only an application form and it has no proper terms on it then it may well be unenforceable.

 

I think there may also be something problematical about Egg agreements, but again you need the right advice from people who have dealt with them.

 

Other people know about online applications, and so on.

 

If you start a thread with the creditor's name in it you should get the help you need to deal with each one.

 

You can also post up the links here. Don't start sending letters until you know where you stand on each one, and hopefully you'll have that information within a few days.

 

I know this is a lot to have to do, but there really is no other way to deal with it.

 

The company collecting the tax should allow you to do that through small instalments. I don't know about bluestone but generally if DCAs are acting for HRMC I think they will accept small regular payments.

 

Can you just explain a little more about the charge from the limited company as I'm a little confused. Was this your own limited company and you were the personal guarantor? And this is with Lloyds Bank?

 

I also think you said there is currently no equity in the house. Is the £54,000 on top of this, and not covered at all? Or is the £54,000 part of the total debts which wipe out the equity?

 

When you booked the car into the garage was that as you personally, or was the bill supposed to go to the company, and then the car had to be taken back anyway? I'm sorry if I'm not getting this straight.

 

You will need to come to some arrangement about the Council Tax soon or they may issue proceedings. You must speak to them before they do that. After the mortgage that is the next priority. It's far more important than the unsecured creditors and I think you should call them first thing on Monday.

 

And pleased don't feel embarrassed or ashamed. There are many people here whose lives have been turned upside down in the past few years, including mine.

[Crocdoc]

I received a notification this morning regarding your difficulties and I will be happy to respond in greater detail over the weekend.

First of all

There are a number of issues here and I would suggest that we look at each individually and in order of priority. To do this can you list what benefits you and your husband are receiving at present as I cannot understand why you are living on tax credits alone.

 

In particular are you in receipt of Income Based Jobseekers Allowance?

[hurtandconfused]

Thankyou everyone

 

I will call the council tax and personal tax first thing on monday to get that sorted.

The second charge/personal guarantee is what I gave a s a director of the ltd company to the bank to borrow money in the companies name... there is £54000 outstanding to the bank but that includes ppi which im trying to get back. There is approx £50000 max equity in my house - (if the house were to sell at market value) I cannot raise any money on my house because mortgage lender is not lending anymore - government owned i think?.

 

The car was the ltd company name... I went in to collect the car (19 months ago) they asked me to sign a personal guarantee over the payments. Tried to negotiate to keep the car when company closed but they wouldn't let me because we failed credit check. so they came to take it away.

 

We only get tax credits and child benefit and no other benefits because Im selling things on ebay so i thought that i wouldn't get anything else as im classed as self employed making money on ebay? We are both applying for jobs and registered on job center website, Maybe I should call the job centre in case i am entitled to a benefit for looking for work. Ive never claimed benefits - (other than tax credit) so don't really know how that all works.

 

thankyou again for all your help

[Desperate Daniella]

If you are getting Working Tax Credits I don't think you can get Job Seekers Allowance as well but I may be wrong.

 

What about the other Directors of the Company? What about their liabilities?

 

I think you are saying that the car was being bought through a finance company and when the company closed the finance company wouldn't let you take over the payments as an individual. Is that right?

[hurtandconfused]

thanks for your reply

 

Thats what i thought re tax credits but i will call them to find out

 

I was the only director

 

It wasnt a bought car it was contract hire yes they said that I couldn't transfer to personal but in hindsight a blessing in disguise as I couldn't afford it anyway

 

thanks again

[wiseajak]

Selling your possesions on eby does NOT make you in anyway self employed.

 

Would only count as income if you were a business seller.

You are entitled to JsA if your not working or working under 16 hours a week. Enquire monday i think ud be suprised.

[hurtandconfused]

Im not a business seller just personal account but have made £4300 in 8 months on ebay from selling litilarry everything in my loft, clothes, books, just anything i can.. I thought I would need to declair that as self employed income? I have told tax credits about it and i think they put it down as self employed income thats why i get working tax? Im a bit confused now.

maybe it should be job seekers and not working tax i need to claim, i will ask the benifits people to clarify

 

many thanks again

[wiseajak]

As far as i know, your not self employed because you are not buying in and selling at a profit. Your selling your own personal items, once you run out thats it, i dont see how that woud classed as self employment.

This is hmrc were talking about they will say anything yo save money.

As far as im aware working tax is for people who worl a certain amount of hours a week (16)or if your a couple claiming no more than 24 hours i think.

 

In my view your not working just selling your stuff to put food on the table, plus they dont really need to know ur selling ur own stuff its non of their bussiness ( please correct me if im wrong)

You are entitled to JSA! I think your on the wrong benefit and have been miss informed by working tax people!

[Desperate Daniella]

Before you change to JSA you need to work out if that would be better than getting WTC and you may find there is very little difference. However, if you are on JSA I believe you have to report in every week/fortnight and tell them all about the jobs you have applied for and so on. If you can find some freelance work you will have more freedom from the Jobcentre.

 

I don't think selling your own possessions should be counted as income.

 

As far as the garage is concerned because you were the sole director of the company they may try and pursue you personally but I think you said the work was done well over a year ago, so are they chasing you at the moment?

[hurtandconfused]

Thanks again.

 

I will need to check with a benefits adviser about all this, I have no problem in reporting job applications for JSA, me and husband have applied for lots, we so desperately want to get jobs and try to get our lives back on track again. Oh I thought I would need to declare my ebay account as income?

 

The car was a 2 year contract hire got it 19 months ago, but they only came to collect it this week which was arranged with them after telling me I couldnt get the agreement transferred in my name

 

thanks again everyone for all help

[Desperate Daniella]

I think wiseajak is right and you only have to declare ebay income if you are a trader, but again I am not too certain.

[wiseajak]

Hiya

No you dont have to declare its only if you are a trader,and if have a bussiness account , ie: buying and selling on for a profit. Which you are doing neither.

If you are going for JSA its £71 a week for a single person but if you and your husband both claim its £112 a week (£224) fortnightly.

 

Only income that you get on a regular basis would be considered on that claim. Seling personal stuff doesnt count.

 

Keep calm i hope all works out well for you

[wiseajak]

Meaning any other income , is from paid work etc other benefits dont count.

[Desperate Daniella]

If you have put down the income from ebay on your WTC application you should see if you can amend it.

[Desperate Daniella]

By the way, I think I forgot to say that Moorcroft, Robinson-Way and Wescot are just DCAs, not debt owners, so they will just send threats. They do not start proceedings themselves.

[Desperate Daniella]

I think you need to look next at the Lloyds account with solicitors. How far has that got in terms of what the solicitors are threatening to do?

 

Then the ones with Lowell, who have a nasty habit of issuing Statutory Demands at the moment. You can defend them but it's all hassle.

 

When you start a thread for Capital One say it is an Online Capital One Agreement in the title.

[Desperate Daniella]

Wiseajak,

 

I think JSA is paid for only six months? Hopefully hurtandconfused and her husband will both have found new jobs in that time, but if she comes off WTC and goes on to JSA instead, what happens at the end of six months?

 

Sorry if I have got it wrong about JSA.